Telstra finalises $11b deal with NBN Co

By Chloe Herrick

Computerworld|

Telstra has finalised its $11 billion definitive agreements with NBN Co, giving the final go-ahead for the telco’s structural separation and use of its network assets in the National Broadband Network (NBN).

“Today we have concluded almost three years of intense and complex negotiations, with multiple parties, and we are very pleased we have delivered this positive outcome for our customers, employees and shareholders,” Thodey said in a statement.

“The Minister has made decisions that enable Telstra to retain ownership of our HFC [hybrid fibre-coaxial] network and our share in FOXTEL, which along with ACCC approval of the final Migration Plan, were pre-conditions to the SSU coming into force.”

A spokesperson from NBN Co said the finalised agreements paved the way for the fibre network rollout. “Today we have cemented the arrangements with Telstra that will enable the efficient re-use of Telstra’s existing infrastructure as we undertake the orderly migration of fixed telecommunications services from the copper of today to the fibre of the future,” the NBN Co spokesperson said.

Thodey also said in a statement that the agreements would “contribute to free cash flow generated in the medium term, provide us with greater financial flexibility and a stronger balance sheet, and help to offset the decline in free cash flow expected as customers migrate onto the NBN.”